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Research: Total Cost of Epsilon Breach Could Reach $4 Billion

Research: Total Cost of Epsilon Breach Could Reach $4 Billion - top government contractors - best government contracting event
Image: Alexey Klementiev
Research: Total Cost of Epsilon Breach Could Reach $4 Billion - top government contractors - best government contracting event
Image: Alexey Klementiev

The total cost of Epsilon breach — including forensic audits and monitoring, fines, litigation and lost business for provider and customers — could possibly run as high as $4 billion, according to research conducted by CyberFactors.

Detected March 30, 2011, the incident involved a hacker accessing Epsilon clients’ customer data and possibly getting his hands on millions of email addresses and customer names.

Although Epsilon said April 4 the affected parties make up approximately 2 percent of total clients, new research by CyberFactor indicates the incident may have impacted 75 companies or 3 percent of Epsilon's customers, and 60 million compromised emails.

“With the cost of technology failures rising at an accelerated rate, the Epsilon event suggests a much more profound financial risk environment is now upon us,” said Regina Clark, research and analytics director at CyberFactors. “Cloud companies would be wise to think more like banks, insurance companies and hedge funds, and not just aggregators of the world's precious data and technology dependencies.“

The research on the breach also found that 51 percent of the costs associated with the breach will occur in year one, 42 percent in the second year, and 7 percent in year three and thereafter.

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